Economic Restructuring, Financial Crises, and Women's Work in Mexico

Abstract

This paper contributes to our understanding of the social impact of economic restructuring and globalization in Mexico by analyzing changes in entry-level employment across three generations of Mexican women. Using retrospective data, we relate the divergent period conditions represented by each cohort to the process of labor market incorporation and other facets of first employment, namely first occupation, class of worker, and firm size. The analysis tests human capital, new international division of labor, and household strategy explanations of the response of female employment to macro-economic fluctuations. Results indicate that rising levels of human capital were central to increases in women's labor force participation across generations and improved labor demand conditions during growth cycles were an important impetus for women's incorporation into professional and more formal types of employment. We also find support for international division of labor perspectives, as women's representation in manufacturing (maquiladora) employment grew substantially over time. Overall, household survival theories best captured the effect of economic restructuring and globalization on women's work. Economic downturns and financial shocks triggered women's labor market incorporation, particularly among married women, lending strong support to the idea that in periods of economic uncertainty women join the labor market in order to diversify household earnings and protect against deteriorating family incomes. However, this labor market push was concentrated in domestic and self-employed occupations and in smaller firms, findings that portend challenges to the long-term prospects of women's work in Mexico.